However, the DOL also has proposed a prohibited transaction class exemption (PTCE) that would provide relief to plan fiduciaries that unknowingly enter into deficient contracts due to a service provider's failure to comply with the disclosure requirements.
EXPANSION OF EXCISE TAX RELIEF UNDER THE VFC PROGRAM Along with revising VFC, the DOL also revised Prohibited Transaction Class Exemption 2002-51 to add two of the new covered transactions involving illiquid assets and the impermissible payment of certain expenses from the plan.
Proposed Prohibited Transaction Class Exemption for Failure to Comply with Service Provider Exemption In addition, the DOL has proposed a new class exemption for situations where, unbeknownst to the Plan Fiduciary, the service provider fails to provide the disclosure required by the proposed regulation.
This advisory opinion addresses whether the prohibition on the payment of sales commissions in Prohibited Transaction Class Exemption ("PTE") 77-3 applies to the payment of so-called 12b-1 fees by a proprietary mutual fund to an unrelated broker.
DOL Finalizes Amendment to Prohibited Transaction Exemption Concerning Interest-Free Loans The Department of Labor (the "DOL") adopted a final amendment to Prohibited Transaction Class Exemption 80-26 ("PTE 80-26") under the Employee Retirement Income Security Act of 1974, as amended ("ERISA").
Prohibited Transaction Class Exemption 75-1 (issued in 1975) has been amended to permit a plan to engage in certain transactions with broker-dealers, reporting dealers, and banks that are plan fiduciaries as long as the institutions and their affiliates do not have investment authority over or provide investment advice with regard to the plan's assets that are involved in the transaction.
The Department of Labor (the "DOL") adopted a final amendment to Prohibited Transaction Class Exemption 75-1 ("PTCE 75-1") under the Employee Retirement Income Security Act of 1974, as amended ("ERISA").
It is worth noting that in situations where the fiduciary completely offsets all advisory and non-advisory fees received by the fiduciary and its affiliates from an affiliated mutual fund, the fiduciary need not qualify for relief under Prohibited Transaction Class Exemption 77-4.
